Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Stock Exchange of Hong Kong  >  Sun Hung Kai Properties Limited    0016   HK0016000132

SUN HUNG KAI PROPERTIES LIMITED

(0016)
  Report
SummaryChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsPress ReleasesOfficial PublicationsSector newsAnalyst Recommendations

Sun Hung Kai Properties : Discloseable Transaction - Successful Tender of Land

share with twitter share with LinkedIn share with facebook
share via e-mail
0
11/27/2019 | 06:48am EST

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

(Incorporated in Hong Kong with limited liability) (Stock Code : 16)

DISCLOSEABLE TRANSACTION

SUCCESSFUL TENDER OF LAND

The Board is pleased to announce that:-

  1. Century Opal and Max Century, both wholly-owned subsidiaries of the Company, have submitted a tender as tenants in common as to 503,513/4,571,740 shares in Century Opal and as to 4,068,227/4,571,740 shares in Max Century for the grant by the Government of Hong Kong of the Land situated at the junction of Lin Cheung Road and Austin Road West, Kowloon, Hong Kong; and
  2. on 27 November 2019, Century Opal and Max Century received the Letter from the Lands Department informing them that their tender for the Land at the Land Premium of HK$42,232,000,000 has been accepted.

As one or more of the applicable percentage ratios as set out in Rule 14.07 of the Listing Rules in respect of the Acquisition exceed 5% but all of the applicable percentage ratios are less than 25%, the Acquisition constitutes a discloseable transaction for the Company and is subject to the announcement requirement under Chapter 14 of the Listing Rules.

INTRODUCTION

The Board is pleased to announce that on 27 November 2019, Century Opal and Max Century, both wholly-owned subsidiaries of the Company, received the Letter from the Lands Department informing them that their tender at the Land Premium of HK$42,232,000,000 submitted by them for the Land (which is situated at the junction of Lin Cheung Road and Austin Road West, Kowloon, Hong Kong), put up for sale by the Government of Hong Kong under the Invitation to Tender, has been accepted.

THE TENDER AND THE ACQUISITION

The parties

  1. The Government of Hong Kong, as the vendor; and
    1
  1. Century Opal and Max Century, both wholly-owned subsidiaries of the Company, as tenants in common as to 503,513/4,571,740 shares in Century Opal and as to 4,068,227/4,571,740 shares in Max Century, together as the purchaser.

To the best of the Directors' knowledge, information and belief having made all reasonable enquiries, the Government of Hong Kong is a third party independent of the Company and its connected persons (as defined in the Listing Rules).

Information on the Land

Location

: Junction of Lin Cheung Road and Austin Road West,

Kowloon, Hong Kong and registered or to be registered in

the Land Registry as Kowloon Inland Lot No. 11262

Site area

:

Approximately 59,746 square metres

Maximum gross

:

294,000 square metres

floor area

Minimum gross

:

176,400 square metres

floor area

Term

: 50 years from the date of the Memorandum of Agreement

Permitted use

: Non-industrial (excluding residential, godown and petrol

filling station but including hotel) purposes

Under the terms of the Invitation to Tender, Century Opal and Max Century shall enter into the Memorandum of Agreement with the Government of Hong Kong in respect of the Acquisition within 14 days from the date of the Letter.

Land Premium and the payment terms

The Land Premium payable is HK$42,232,000,000. In determining the Land Premium, the Company has taken into account various factors including the development prospects and the potential of the Land and the overall prospect of the property market in Hong Kong.

An initial deposit of HK$50,000,000, paid at the time when the tender was submitted, has been applied in part payment of the Land Premium. A further deposit of HK$4,173,200,000 shall be paid within 7 working days of the date of the Letter and the remaining balance of the Land Premium of HK$38,008,800,000 shall be paid within 28 days of the date of the Letter.

The Land Premium will be financed by a combination of the Group's internal resources and bank borrowings.

2

REASONS FOR AND BENEFITS OF THE ACQUISITION

The principal activities of the Group include the development of and investment in properties for sale and rent. The Group has extensive experience in developing integrated developments in Hong Kong and Mainland China and can leverage on its experience in developing the Land into a development consisting of a premium shopping mall and several office towers for long term investment purpose. The Land is situated in a strategic location in the West Kowloon District on and adjoining the high speed railway Hong Kong West Kowloon Station which connects to all major cities in Mainland China through the high speed railway network of China. Apart from the high speed rail, the Land has direct access to 3 railway lines, namely, the MTR West Rail Line, the Tung Chung Line and the Airport Express Line forming a transportation hub in the Greater Bay Area. The Acquisition enables the Group to achieve scale, and generate great synergy with the International Commerce Centre in West Kowloon comprising hotel, offices and retail development. This is comparable to the Group's IFC development and will create another major business core in Hong Kong. The Group intends to invite other long term strategic investors to participate in the development of the Land so that the parties can pool their expertise, resources and strength together to undertake this landmark project.

It is expected that the Acquisition will enhance the property investment portfolio of the Group, generate stable recurring rental income and further strengthen the long term development of the Group in Hong Kong.

The Board believes that the terms of the Acquisition are fair and reasonable, and in the interests of the Company and its shareholders as a whole.

GENERAL INFORMATION

Both Century Opal and Max Century are companies incorporated in Hong Kong with limited liability. The principal activities of Century Opal and Max Century are property development.

The Company is an investment holding company and its subsidiaries are principally engaged in the development of and investment in properties for sale and rent, hotel operations, telecommunications, transport infrastructure and logistics, and data centre operations.

IMPLICATIONS UNDER THE LISTING RULES

As one or more of the applicable percentage ratios as set out in Rule 14.07 of the Listing Rules in respect of the Acquisition exceed 5% but all of the applicable percentage ratios are less than 25%, the Acquisition constitutes a discloseable transaction for the Company and is subject to the announcement requirement under Chapter 14 of the Listing Rules.

DEFINITIONS

In this announcement, unless the context otherwise requires, the following expressions have the following meanings:-

"Acquisition"

the acquisition of the Land at the Land Premium on the

terms of the Invitation to Tender

3

"Board"

the board of Directors

"Century Opal"

Century Opal Limited 紀 奧 有 限 公 司 , a company

incorporated in Hong Kong with limited liability and a

wholly-owned subsidiary of the Company

"Company"

Sun Hung Kai Properties Limited 新鴻基地產發展

有限公司, a company incorporated in Hong Kong with

limited liability, the shares of which are listed on the Main

Board of The Stock Exchange of Hong Kong Limited

(Stock Code: 16)

"Director(s)"

the director(s) of the Company

"Group"

the Company and its subsidiaries

"HK$"

Hong Kong dollar, the lawful currency of Hong Kong

"Hong Kong"

the Hong Kong Special Administrative Region of the

People's Republic of China

"Invitation to

the invitation to tender under the tender notice issued by the

Tender"

Government of Hong Kong inviting tenders by way of

premium for the grant of the Land

"Land"

the land located at the junction of Lin Cheung Road and

Austin Road West, Kowloon, Hong Kong and registered or

to be registered in the Land Registry as Kowloon Inland

Lot No. 11262

"Land Premium"

the land premium of HK$42,232,000,000, being the

consideration for the Acquisition

"Lands Department"

the Lands Department of the Government of Hong Kong

"Letter"

a letter from the Lands Department dated 27 November

2019 notifying the acceptance of the tender for the Land

submitted by Century Opal and Max Century

"Listing Rules"

the Rules Governing the Listing of Securities on The Stock

Exchange of Hong Kong Limited

"Max Century"

Max Century (H.K.) Limited 信明(香港)有限公司, a

company incorporated in Hong Kong with limited liability

and a wholly-owned subsidiary of the Company

4

"Memorandum of

the memorandum of agreement to be entered into between

Agreement"

the Government of Hong Kong, Century Opal and Max

Century in respect of the Acquisition pursuant to the terms

of the Invitation to Tender

By order of the Board

YUNG Sheung-tat, Sandy

Company Secretary

Hong Kong, 27 November 2019

As at the date hereof, the Board of Directors of the Company comprises eight Executive Directors, being KWOK Ping-luen, Raymond (Chairman and Managing Director)(KWOK Ho-lai, Edward being his Alternate Director), WONG Chik-wing, Mike (Deputy Managing Director), LUI Ting, Victor (Deputy Managing Director), KWOK Kai-fai, Adam, KWOK Kai-wang, Christopher, KWONG Chun, TUNG Chi-ho, Eric and FUNG Yuk-lun, Allen; three Non-Executive Directors, being LEE Shau-kee (Vice Chairman), KWAN Cheuk-yin, William and KWOK Kai-chun, Geoffrey; and nine Independent Non-Executive Directors, being YIP Dicky Peter, WONG Yue-chim, Richard, LI Ka-cheung, Eric, FUNG Kwok-lun, William, LEUNG Nai-pang, Norman, LEUNG Kui-king, Donald, LEUNG KO May-yee, Margaret, FAN Hung-ling, Henry and WU Xiang-dong.

This announcement is made in English and Chinese. In case of any inconsistency, the English version shall prevail.

5

Disclaimer

Sun Hung Kai Properties Ltd. published this content on 27 November 2019 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 November 2019 11:47:06 UTC

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on SUN HUNG KAI PROPERTIES LI
01/10Sun Hung Kai Properties says to lend farmland for transitional housing
RE
2019SUN HUNG KAI PROPERTIES : Connected Transaction - Disposal of 25% Interest in a ..
PU
2019Hong Kong home prices fall for fifth straight month in October
RE
2019SUN HUNG KAI PROPERTIES : West Kowloon site sold
AQ
2019SUN HUNG KAI PROPERTIES : Discloseable Transaction - Successful Tender of Land
PU
2019WALL STREET STOCK EXCHANGE : Stocks Slip on Doubts About China-U.S. Tariff Talks
DJ
2019Global Stocks Slip on Doubts About China-U.S. Tariff Talks
DJ
2019Global Stocks Slip on Doubts About China-U.S. Tariff Talks
DJ
2019Global Stocks Slip on Doubts About China-U.S. Tariff Talks
DJ
2019SUN HUNG KAI PROPERTIES LIMITED : Ex-dividend day for final dividend
FA
More news
Financials (HKD)
Sales 2020 103 B
EBIT 2020 41 222 M
Net income 2020 33 648 M
Debt 2020 86 582 M
Yield 2020 4,36%
P/E ratio 2020 10,1x
P/E ratio 2021 9,62x
EV / Sales2020 4,17x
EV / Sales2021 4,07x
Capitalization 344 B
Chart SUN HUNG KAI PROPERTIES LIMITED
Duration : Period :
Sun Hung Kai Properties Limited Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends SUN HUNG KAI PROPERTIES LI
Short TermMid-TermLong Term
TrendsBullishNeutralNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus BUY
Number of Analysts 16
Average target price 143,76  HKD
Last Close Price 118,70  HKD
Spread / Highest target 61,7%
Spread / Average Target 21,1%
Spread / Lowest Target -13,1%
EPS Revisions
Managers
NameTitle
Ping Luen Kwok Chairman & Managing Director
Di Qi Ye Independent Non-Executive Director
Yue Chim Wong Independent Non-Executive Director
Kwok Lun Fung Independent Non-Executive Director
Shau Kee Lee Vice Chairman